Deloitte lays off 200 consultants and auditors in Toronto

Deloitte Canada has laid off approximately 200 people in its Toronto headquarters, according to a report from Business Insider. The layoffs affected the company’s artificial intelligence group Omnia AI, the audit division, and the consulting division.

Deloitte Canada, which has approximately 12,000 employees, said the cuts were part of their regular fiscal year-end process and based on “business needs and forecasting for the new fiscal year.”

The consulting industry has been negatively impacted by the pandemic, as social distancing policies have blocked them from performing on-site client work. Meanwhile, the economic devastation of the pandemic has caused clients in many industries to reassess their budgets for large consulting projects.

Initial projections from Source Global Research in March estimate the North American consulting market will decline by 15% in 2020.

Expensive projects leveraging artificial technology, for example, could now be deemed a luxury when many organizations are straining to maintain adequate cash flow.

Deloitte and the other Big Four firms have consequently been tightening their belts as clients reduce project work in a faltering economy. Consulting firms were likewise hit hard during the Great Recession.

According to tipsters on the website Going Concern, Deloitte has been encouraging employees to reduce their work hours by 20%, 35% or 50% in order to avoid layoffs. The firm has also been encouraging workers to take paid time off.

Partners have also reportedly been taking pay reductions of up to 30%, as the Big Four prepare for the lean times ahead.

KPMG Canada, meanwhile, laid off approximately 200 workers in March, according to Going Concern. The cuts affected major centres, including Toronto, Vancouver, and Calgary, and impacted various service departments and seniority levels.